Understanding PF Withdrawal Taxes and Pension Eligibility: Can I Claim My Withheld Amount?

Hi,

I worked in an organization for 4 years and 10 months. I then quit and currently do not work. I opted for the withdrawal of my PF. Since I did not complete 5 years of continuous service, 30.9% tax was levied on my net balance PF amount. The amount deposited into my account was after withholding this tax amount. Also, it was informed that 8.33% of the employer's PF is paid towards the pension scheme. I would like to know:

1) Is the 30.9% tax applied to the net balance amount, i.e., both the employee and employer PF contributions, or is it on the employee's interest and the employer contribution amount?

2) Is there any way we can claim this amount?

3) What is the eligibility to get the pension fund amount?

Kindly clarify.

Thanks.

For getting a pension, you should have completed 10 years of service. For withdrawal benefits before ten years, you are supposed to receive the full amount, including both the employee's and the employer's share. The Pension Fund is withheld only in cases where you opt for a Scheme Certificate instead of withdrawal benefits. Please contact the EPF Office for clarification on this matter.

Regarding tax deducted at source on EPF withdrawal, I am not aware of the details. Please verify the information in this regard with the EPFO.

Regards,
Madhu.T.K

EPF and Pension Fund Withdrawal

EPF account and pension fund account are different. Hence, it is not possible to withdraw these two as a consolidated payment.

The withdrawal benefit from the pension fund for 5 years is calculated as 5.02 (factor as per Table D for 5 years) multiplied by the last drawn salary.

The amount that can be withdrawn from EPF is the total amount (both employee and employer contribution) minus the pension contribution. Interest will be monthly compounded on this amount.

Regards,
Abbas.P.S